Econergy (ECNR) AI Stock Analysis

• Market Cap: ₪4.81B
• Dividend Yield: N/A
• Average Volume (3M): 19.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -9.53%
• EPS Growth: -125.66%
• Country: IL
• Employees: 120
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 66,893,190
• 10 Day Avg. Volume: 16,123
• 30 Day Avg. Volume: 19,033
• PEG Ratio: 1.42
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 11.35
• P/FCF Ratio: -2.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 6,619.00 ▲(66.01% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily held back by weak financial quality—especially persistently negative operating/free cash flow and unstable profitability—despite strong revenue growth. Technicals are a clear positive with strong momentum above key moving averages, but valuation is constrained by losses (negative P/E) and no stated dividend yield.

Positive Factors

Revenue Growth

A material TTM revenue increase (≈22.5%) and a documented top-line step-up indicate growing end-market demand and expanding scale in the renewable-utilities business. Durable revenue momentum supports longer-term contract leverage, capacity utilization gains, and the potential to absorb fixed costs as the business scales.

Gross Profitability

Strong gross profitability provides an enduring structural buffer: it indicates core project economics and unit margins are healthy. If management sustains gross margins, the company can focus on converting margin into operating leverage over time, improving cash generation once operating expenses and financing stabilize.

Leverage Improvement

A meaningful reduction in debt-to-equity signals improving financial discipline and greater balance-sheet flexibility. Lower leverage reduces refinancing strain and interest burden structurally, making the company better positioned to fund growth and weather cycles while pursuing profitability stabilization over the next several quarters.

Negative Factors

Negative Operating & Free Cash Flow

Persistent negative operating and free cash flow is a structural weakness: it forces reliance on external financing, limits reinvestment from internal sources, and raises liquidity and execution risk. Continued cash burn constrains the firm's ability to de-risk projects and lengthens the timeline to self-sustaining operations.

Volatile and Slightly Negative Net Income

Inconsistent earnings and a slightly negative TTM net income reflect unstable margin conversion and operational variability. Such volatility undermines sustainable return generation, complicates planning, and prolongs the period before retained earnings can meaningfully reduce leverage or fund capex without external capital.

Elevated Balance-Sheet Risk

Despite deleveraging, remaining meaningful leverage and slightly negative returns on equity leave the company exposed to refinancing and credit-cost shocks. Structural balance-sheet risk persists until profitability and cash flows sustainably improve, limiting strategic optionality and increasing funding costs over the medium term.

Econergy Business Overview & Revenue Model

Company Description

Econergy Renewable Energy Ltd, an independent power producer company, develops, owns, and operates utility-scale renewable energy projects. The company's renewable energy projects produces and supplies power. It has solar, wind, and bio-gas plants. The company is headquartered in Kfar Saba, Israel.

How the Company Makes Money

Econergy generates revenue primarily through the sale of electricity produced by its renewable energy projects, which are often sold under long-term power purchase agreements (PPAs) with utilities and corporate buyers. Additionally, the company earns income through government incentives and tax credits related to renewable energy production. Another key revenue stream includes consulting services related to energy efficiency and sustainability strategies for businesses. Econergy may also engage in partnerships with other energy firms and government entities to develop large-scale energy projects, further enhancing its revenue potential.

Econergy Financial Statement Overview

Summary

Strong TTM revenue growth and robust gross profitability are offset by slightly negative TTM net income, still-meaningful leverage despite improvement, and persistently negative operating and free cash flow indicating ongoing cash burn and funding risk.

Income Statement

Results show a sharp top-line step-up in TTM (Trailing-Twelve-Months), with revenue up materially versus the prior period and very strong gross profitability. However, bottom-line quality is inconsistent: TTM (Trailing-Twelve-Months) net income is slightly negative and profitability has swung meaningfully year-to-year (losses in 2023 and 2021, profit in 2022 and 2024). Overall, strong revenue momentum and gross profit are offset by volatile earnings and uneven margin conversion to net profit.

Balance Sheet

The balance sheet has improved versus 2024, with leverage moderating (debt-to-equity declining from ~3.25 in 2024 to ~1.65 in TTM (Trailing-Twelve-Months)) and equity increasing. That said, leverage remains meaningful for the sector and returns on equity are currently slightly negative in TTM (Trailing-Twelve-Months), reflecting the recent net loss. Overall asset growth is substantial, but the company still carries elevated balance-sheet risk until profitability stabilizes.

Cash Flow

Cash generation is the primary weakness: operating cash flow is negative across all shown periods, including TTM (Trailing-Twelve-Months). Free cash flow is also deeply negative in TTM (Trailing-Twelve-Months), suggesting heavy cash burn and/or significant investment needs, which increases reliance on external funding. Even with revenue growth, cash conversion remains poor, making liquidity and funding risk a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.81M	2.58M	1.10M	8.98M	976.00K
Gross Profit	37.13M	2.00M	486.00K	7.33M	212.00K
EBITDA	41.64M	36.04M	-8.98M	169.00K	-9.53M
Net Income	-4.40M	19.92M	-11.29M	2.37M	-10.88M
Balance Sheet
Total Assets	1.11B	783.67M	372.14M	201.57M	136.28M
Cash, Cash Equivalents and Short-Term Investments	89.29M	193.38M	52.41M	20.02M	87.50M
Total Debt	236.06M	524.66M	203.26M	70.06M	69.19M
Total Liabilities	666.39M	571.43M	235.28M	89.46M	77.47M
Stockholders Equity	259.80M	161.25M	114.11M	100.74M	58.03M
Cash Flow
Free Cash Flow	-274.25M	-8.03M	-15.21M	-13.45M	-14.66M
Operating Cash Flow	-12.94M	-7.37M	-14.81M	-13.23M	-2.50M
Investing Cash Flow	-211.98M	-200.09M	-125.61M	-96.17M	-36.29M
Financing Cash Flow	123.72M	337.19M	173.91M	44.96M	123.13M

Econergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3987.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ECNR, the sentiment is Positive. The current price of 3987 is below the 20-day moving average (MA) of 6222.90, below the 50-day MA of 5812.68, and below the 200-day MA of 4228.84, indicating a bullish trend. The MACD of 320.34 indicates Negative momentum. The RSI at 71.97 is Negative, neither overbought nor oversold. The STOCH value of 93.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ECNR.

Econergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENRG	55 Neutral	₪11.56B	35.44	―	2.25%	-1.14%	6.47%
ECNR	54 Neutral	₪4.81B	-167.26	―	―	-9.53%	-125.66%
MSKE	52 Neutral	₪9.18B	71.54	―	―	―	―
DORL	47 Neutral	₪13.39B	-11.76	―	―	113.54%	-242.38%
NOFR	44 Neutral	₪6.41B	-219.79	―	―	5.79%	-13.05%